Air NZ claimed it would allow Queenstown ratepayers to keep full ownership of the airport.
In the deal announced on July 8, QAC created and sold a 24.99% shareholding to AIAL, with the Auckland Airport looking to increase its interest to up to 35%.
Air New Zealand Australasia group manager Bruce Parton, of Auckland, told the Otago Daily Times last night he had "never seen a deal done like this in New Zealand of this level".
"[QAC] have got one valuation - for an asset of that value - and sold it to another airport.
"It's a shocking deal and we have indicated ... this deal didn't need to be done. We are totally with the Queenstown residents who are just incensed about it.
"It caught us on the hop - this caught us totally by surprise.
"We have never heard of a deal like this not going through a public process," Mr Parton said.
Air New Zealand was now prepared to go "on the record" with its proposed consortium, which would give QAC the infrastructure assets and financial strength to grow alongside the "rapid rate of capacity" being injected by the national carrier, Pacific Blue, Qantas and Jetstar.
If the airlines took a "corner shareholding" they would not seek "any dividends", instead asking they be reinvested into the infrastructure to ensure the airport remained "world class" and could cope with increased demands "due to all airlines offering attractive domestic and transtasman fares".
If the consortium did not eventuate, Air New Zealand would consider "any proposal to underwrite infrastructure development at Queenstown Airport" which would "certainly allow" the community to retain full ownership of the asset.
"We have made contact with the [chief executives] of other airlines and we are working through, with them, whether they have any interest in a consortium."
An Air New Zealand senior representative would meet Queenstown Lakes Mayor Clive Geddes on Monday.
Mr Parton said the airline met regularly with Mr Geddes, but the QAC deal would be at the "top of the agenda".
The airline had not spoken to QAC about the proposal.
"At the moment, it's all about the council and the mayor. They are the shareholders and we are looking to engage with them.
"There is little point in discussing it with QAC given they have quite clearly shown their [thoughts] about going through a transparent process."
Air New Zealand had also requested an investigation by the Ombudsmen and had asked for a response from the Commerce Commission "trying to understand how this is not monopoly behaviour".
"Our key aim is to get this overturned and do the deal properly.
"If in the end they say `it's done', but there is a need to go for more investment to Queenstown [Airport], we certainly would be interested in being part of that.
"We've been committed to growing the Queenstown market for more than 30 years and want to ensure its ongoing success for decades to come. We believe the current arrangement will not be conducive to that ..."
Meanwhile, Queenstown Community Strategic Asset Group (QCSAG) spokesman John Martin said the group planned to take the matter to the Office of the Auditor-general "this week".
"We are taking a measured, step-by-step approach. We are serious about it. We have laid out our position ... we are looking at the facts of the case and we are planning ... the democratic argument."
Mr Martin said QCSAG members believed the alliance was "seriously flawed" and a "coup from the inside".
"It's a bad marriage, a bad democracy, a bad transaction and there will be a bad outcome".
Mr Geddes said he had no comment on Air New Zealand's statement at this stage.
No-one for the OAG could not be contacted yesterday, neither could QAC chairman Mark Taylor.
